Central Bank cuts economy growth forecast by 1%

THE Central Bank has cut its previous growth forecast for the Irish economy by a full 1% for 2007 from 5.75% to 4.75%.

That compares with a growth of 7.4% last year and gives a two-year average of 5% and compares favourably with 2.7% for the EU and 2% for the US.

A build up of stocks last year and some slippage in productivity has hit growth prospects in the current year, the bank said.